Answer to the question no 1(i)
ACI Group of Company
Balance Sheet (Vertical Analysis)
For the years ended June 30, 2019
Particulars
2019
(%)
2018
(%)
Assets
Property, plant and equipment
25,570,747,581
40.09
23,017,048,759
41.51
1,304,391,166
2.05
1,143,314,786
2.06
Other investments
848,208,350
1.33
735,339,955
1.33
Intangible assets
103,177,750
0.16
118,237,964
0.21
Non-current assets
27,826,524,847
43.63
25,013,941,464
45.11
Inventories
13,560,088,685
21.26
11,792,577,831
21.27
Trade receivables
13,827,165,973
21.68
10,963,329,914
19.77
Other receivables
509,581,982
0.80
1,099,973,493
1.98
50,583,865
0.08
10,907,763
0.02
Advances, deposits and prepayments
5,683,574,787
8.91
4,433,434,344
8.00
Cash and cash equivalents
2,319,988,462
3.64
2,131,550,039
3.84
Current assets
35,950,983,754
56.37
30,431,773,384
54.89
Total Assets
63,777,508,601
100.00
55,445,714,848
100.00
Equity-accounted investees
Intercompany receivables
Equity and Liabilities
Equity
Share capital
498,895,266
0.78
482,024,411
0.87
Share premium
402,310,367
0.63
402,310,367
0.73
Reserves
4,833,537,172
7.58
4,744,427,788
8.56
Retained Earnings
4,073,015,333
6.39
5,451,050,122
9.83
Equity attributable
9,807,758,138
15.38
11,079,812,688
19.98
-298,384,844
-0.47
-59,418,942
-0.11
9,509,373,294
14.91
11,020,393,746
19.88
Employee benefits
1,178,872,434
1.85
994,107,783
1.79
Long term bank loan
8,079,177,445
12.67
7,972,367,343
14.38
Deferred tax liabilities
96,558,264
0.15
378,990,924
0.68
Non-current liabilities
9,354,608,143
14.67
9,345,466,050
16.86
Bank overdraft
4,618,176,594
7.24
4,159,153,500
7.50
27,263,916,795
42.75
21,933,605,080
39.56
Trade payables
4,338,090,506
6.80
2,252,947,112
4.06
Other payables
4,699,441,016
7.37
3,924,141,882
7.08
Non-controlling interest
Total Equity
Liabilities
Loans and borrowings
Current tax liabilities
3,993,902,253
6.26
2,810,007,478
5.07
Current Liabilities
44,913,527,164
70.42
35,079,855,052
63.27
Total liabilities
54,268,135,307
85.09
44,425,321,102
80.12
Total equity and liabilities
63,777,508,601
100.00
55,445,714,848
100.00
Equation for percentage:
𝑷𝒓𝒐𝒑𝒆𝒓𝒕𝒚,𝒑𝒍𝒂𝒏𝒕 𝒂𝒏𝒅 𝒆𝒒𝒖𝒊𝒑𝒎𝒆𝒏𝒕
𝑻𝒐𝒕𝒂𝒍 𝒂𝒔𝒔𝒆𝒕𝒔
×100
25,570,747,581
= 63,777,508,601×100
Interpretation: For 2019, this company’s total assets are 63,777,508,601 among which current
assets comprise a maximum portion which is 54.89% and non-current assets comprises 45.11%.
It indicates that this company’s financial position is largely dependent on short term assets.
However, among its liabilities, current liabilities consist of major part 63.27% and long term
liabilities is of only 16.86%. Its equity portion is 19.88% of total assets and total liabilities are
80.12%. So, this indicates that this company is in debt. The standard portion of liability is 50%
where ACI Company’s liability is 80.12%. So, this company cannot take any more debt but they
have to reduce their debt.
ACI Group of Company
Balance Sheet (Vertical Analysis)
For the years ended June 30, 2019
Particulars
Revenue
2019
%
2018
%
63,143,695,243
100.00
56,123,321,109
100.00
Cost of Sales
-44,826,113,310
-70.99
-40,257,620,969
-71.73
Gross profit
18,317,581,933
29.01
15,865,700,140
28.27
-14,992,731,691
-23.74
-12,782,328,798
-22.78
Administrative, selling and
distribution expenses
Other income
Operating profit
10,037,945
0.02
161,703,349
0.29
3,334,888,187
5.28
3,245,074,691
5.78
0.00
540,300,000
0.96
161,076,381
0.26
35,426,012
0.06
-3,135,531,445
-4.97
-2,231,054,208
-3.98
360,433,123
0.57
1,589,746,495
2.83
Gain from sale of Brands
Share of profit of equity accounted
investees
Net Finance costs
Profit before Contribution of WPPF
Contribution of WPPF
Profit before tax
Current tax
Deferred tax income/(expense)
Income tax expense
Profit after tax
Equation:
𝑹𝒆𝒗𝒆𝒏𝒖𝒆
𝑵𝒆𝒕 𝒓𝒆𝒗𝒆𝒏𝒖𝒆
×100
-146,239,765
-0.23
-168,083,901
-0.30
214,193,358
0.34
1,421,662,594
2.53
-1,386,439,405
-2.20
-1,374,709,885
-2.45
276,264,979
0.44
363,597,434
0.65
-1,110,174,426
-1.76
-1,011,112,451
-1.80
-895,981,068
-1.42
410,550,143
0.73
𝟔𝟔,𝟔𝟔𝟔,𝟔𝟔𝟔,𝟔𝟔𝟔
=
𝟔𝟔,𝟔𝟔𝟔,𝟔𝟔𝟔,𝟔𝟔𝟔
×100
Interpretation: From the year 2019, ACI group of companies did not perform well. From this
vertical analysis, it is seen that the net income is 1.42% of net sales which indicates that the
company’s operational failure. The gross profit is 29.01%. It has some profit before tax which is
0.34%. However, the most expenses were made by Administrative, selling and distribution
expenses which was (23.74) %. Moreover, it can be said that this company is facing cost
increments whenever they are increasing their sales.